Assuming the Same Coupon Rate and Maturity Length,when the Interest

question 7

Multiple Choice

Assuming the same coupon rate and maturity length,when the interest rate on a Treasury Inflation Protected Security is 3 percent,and the yield on a nonindexed Treasury bond is 8 percent,the expected rate of inflation is

• A) 3 percent.
• B) 5 percent.
• C) 8 percent.
• D) 11 percent.

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